Pepperstone claims that there are five reasons why automated trading is the way to go. Let's find out all about it.
Automated or algorithmic trading is basically a trading system that uses a computer program to execute trades on your behalf based on a set of predefined rules. You can use any strategy and create your own scenario for future trades. The software would monitor the markets and notify you when a trading opportunity is identified.
Pepperstone is one of the top brokers that offers several handy tools to execute your trades automatically based on either existing or new trading scenarios. As a matter of fact, a large number of daily transactions in this broker actually take place using this system.
The broker claims that there are five reasons why you should try automated trading, namely:
- Minimize emotions: Automated trading can help you minimize emotions while trading by executing the trade according to the predefined plan, regardless of the circumstances.
- Backtesting: You can test multiple strategies at the same time using different robots across platforms.
- Improved trading speed: The software can execute trades as soon as all the criteria are fulfilled, making the process faster and more effective compared to manual trading.
- Save time: There's no need to stare in front of the computer for hours to find trading opportunities because the software will monitor the markets and execute the trade for you.
- Promising future: Automated trading is a growing field within the trading world, so we might see many new developments in the future.
The broker even prepared a dedicated video to explain the matter:
In this article, we'll take a deeper look into those factors and see whether automated trading can really improve your trading journey.
1. Minimize Emotions
One of the things that you should avoid is trading under emotions. Traders can get easily overwhelmed by fear, euphoria, panic, greed, and many other feelings which may lead to irrational decisions and significant capital loss. While having emotions is totally normal for humans, it can affect your trade results if you can't control them.
There are some methods that you can do to manage your emotions, such as meditating, journaling, etc. However, it might take a long time before you can fully control your emotions while trading. This is what makes automated trading a great solution for any trader.
Automated trading can help traders to keep their emotions in check when making trades. The algorithm would execute your orders according to a predefined plan, regardless of the circumstances. This means, there will be no impulsive actions or self-sabotage. As a result, you can be sure that your trades are carried the way they're supposed to.
Automated trading can ensure that every rule in the strategy is rightly followed. This can help you test the efficacy of your strategy and understand the markets based on historical data. Aside from that, Pepperstone allows you to look at multiple possible outcomes from several robots across platforms, further confirming the strength of your strategy under certain market conditions.
Just keep in mind that the computer is the main system driver here. A machine can't make guesses or changes the plan on the spot, so be sure to check the trading scenario before activating it.
3. Improved Trading Speed
Automated trading can generate more money because a computer is way faster in operation than a normal human. Once the rules are all fulfilled, the system will immediately execute the trade, along with the profit targets and stop losses. Thus, automated trading can capitalize on the market more effectively than manual trading.
It is worth noting that most financial markets move very fast in real time, so traders can easily lose trading opportunities. This is why getting in and out of the markets quickly is a great advantage that can make a huge difference in the trading result. Automated trading can prevent that from happening and minimize human errors.
4. Reduced Time
Every trader knows that making money from trading is not easy. It takes a lot of time and dedication to formulate a powerful trading strategy and analyze the markets. However, this is not the case with automated trading. The system is designed to save your time and make your job easier, making it a great choice for everyone.
All you need to do is lay down the parameters for your future plans and let the system do the trading for you. You can even choose from existing strategies on the platform instead of making a new one. Once the plan is checked and optimized, you simply need to monitor your positions every once in a while.
5. Promising Future
Automated trading is a fast-growing segment in the trading world at the moment. We keep seeing new updates and innovations everywhere, further confirming the relevance of automated trading in the future. As a result, those who have just started their algorithmic journey in Pepperstone can get a chance to spend less time familiarizing themselves with the system and gain higher potential profits.
Pepperstone was founded in 2010 by a team of experienced traders with a shared commitment to improve the world of online trading. Based in Melbourne, Australia, they grew to become one of the largest forex brokers in the world. If traders want to find a broker that provides low spreads, fast execution, and award-winning support, then the answer is Pepperstone.
Pepperstone has a strong legality guarantee because it has been licensed by the Australian regulator ASIC and FCA. Traders' funds can be deposited in segregated accounts at top Australian banks, one of which is the National Australia Bank (NAB). Therefore, the safety of funds is not a concern if a trader chooses to open an account in Pepperstone.
They succeeded in collaborating with 23 top banks to bring Bid to investors instantly via optical fiber. This allows all orders to be executed 100 percent automatically with low latency up to 0.05 milliseconds, without dealing desk intervention and requotes, as well as with super low trading costs.
Trusted by over 73,000 traders around the world, Pepperstone processes an average of USD12.55 billion of trading volumes every day. Because of that, they have many awards such as:
- The Best Global Forex ECN Broker 2019 and Best Forex Trading Support-Europe
- Best Australian Broker and Best Trading Platform 2018 by Compareforexbrokers.com
- Best Forex ECN Broker, Best Forex Trading Support, and Best Forex Trading Conditions by UK Forex Awards 2018
With the many rewards gained, Pepperstone hopes to attract more and more traders from all over the world. The rising performance of Pepperstone is not only due to the super-tight spreads and fast execution that it provides, but also because many traders are interested in trading with deposits in currencies other than US Dollars.
For this reason, Pepperstone is one of the most market-responsive brokers because it is willing to accept deposits in 10 currencies, which include AUD, USD, EUR, CAD, GBP, CHF, JPY, NZD, SGD, and HKD.
Trading in Pepperstone would allow traders to choose between 11 trading platforms: MT4 for desktop, MT4 Mac, MT4 iPhone, MT4 Android, MT4 iPad/Tablet, MT5, WebTrader, cTrader WebTrader, cTrader cAlgo, and cTrader Mobile. The choice of trading platforms may seem confusing to novice traders, but actually, it is very useful because it has fast execution.
When trading forex, traders can enjoy raw spreads from 0.0 pips on Razor accounts, over 61 currency pairs, and commission-free account funding on a wide range of deposit options. In addition to currency pairs, Pepperstone provides many types of trading instruments, including CFDs for indices and shares, commodities, and cryptocurrencies.
Instruments in commodity trading are pretty much diversified. Not only metal, gold, and silver, but traders can also trade with soft commodities such as cotton, sugar, coffee, cocoa, and orange juice. Pepperstone also provides trading on energy (oil and gas).
There are two types of accounts provided by Pepperstone, namely Razor accounts, and Standard accounts. If you area beginner, it is recommended to choose a Standard account with an average EUR/USD spread of 1.0-1.3 pips and free commission.
Those with particular trading styles such as scalpers and algorithmic traders may enjoy the lower cost setup traditionally seen in a Razor account, with a commission from AUD7 round turn of 100k traded. You can start trading with a minimum lot of 0.01 (micro) and 1:400 leverage.
As a Pepperstone client, a trader can fund and withdraw with alternative methods including Visa, Mastercard, POLi internet banking, bank transfer, BPay, PayPal, Neteller, Skrill, and Union Pay.
If you are new to trading or looking to practice your trading strategies in a risk-free environment, you can create Demo Account in Pepperstone. But if you are an experienced trader or prefer to learn by doing, Pepperstone provides a Live Account that allows you to trade with live executions and pricing.
Traders can also follow and copy strategies from popular traders using third-party services while learning how to improve their trading abilities. Pepperstone has partnered with a range of social trading platforms that traders can choose from, such as Myfxbook, ZuluTrade, Mirror Trader, MetaTrader signals, and Duplitrade.
In conclusion, Pepperstone's automated trading system offers a series of benefits that may not be found in other trading strategies. It can help you achieve your goals and generate more money without having to spend most of your time in front of the computer. However, it is important to understand that while the system is attractive, you must approach it with care and full awareness of the risks.
Please note that successful automated trading needs a strong trading plan. The system will execute your trades based on the plan that you set up beforehand, so at the end of the day, the success of your trade still depends on you. Make sure that you know what you're doing before risking your money, regardless of the trading method that you use.
Pepperstone is an award-winning broker offering various trading instruments including forex, CFD, and crypto. This Australian broker is regulated by the Australian Securities and Investments Commission (ASIC).